
The Civil Aviation Ministry has withdrawn temporary domestic airfare caps, effective from March 23rd, citing stabilised operations. The caps were implemented in December during the IndiGo crisis to regulate pricing. With the removal of these controls, airfares are expected to rise due to higher Aviation Turbine Fuel (ATF) prices and increased operational costs for airlines. The ministry has stated that airlines must maintain fair and transparent pricing. The Directorate General of Civil Aviation (DGCA) will monitor airfares in real time to ensure prices do not rise unjustifiably. Authorities have warned they may reintroduce fare controls if excessive pricing or market disruptions occur. The decision comes as airline operations have normalised following capacity issues with IndiGo, though passengers are likely to face higher ticket prices in the coming period.
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